ONGC negotiating import of crude oil with Saudi Arabia

PTIAug 3, 2003, 05.43pm IST

NEW DELHI: State-run Oil and Natural Gas Corp (ONGC) on Sunday said it was negotiating with Saudi Arabia import of one million tonnes of crude oil on term contract for processing at its subsidiary Mangalore Refineries and Petrochemicals Ltd (MRPL).

"Government has given us the freedom to import crude oil for MRPL directly. We are talking to Saudi Aramco for one million tonne of crude on government-to-government terms," ONGC chairman and managing director Subir Raha told a news conference here.

Previously, Indian Oil Corp (IOC) was canalising imports for MRPL. These included a 5 million tonnes annual term contract with Iran.

"We have sought assigning the term crude from Iran to us," he said.

Five million tonnes of Iranian crude and one million tonnes of Saudi crude completes the sour grade (high sulphur crude) requirement of MRPL, he said adding 3.69 million tonnes of sweet crude (low in sulphur) is being supplied from Mumbai High and ONGC's Sudan oil field.

"Our share from Sudan oil field is two cargoes, one cargo (about 80,000 tonnes) we are shipping to Mangalore and the other we are selling in the international market," he said.

ONGC Videsh Ltd, the overseas arm of ONGC, had earlier this year taken 25 per cent stake in Greater Nile Oil Project in Sudan.

MRPL will process 1.6 million tonnes of Sudan crude this year while just over two million tonnes crude would be shipped from ONGC's Mumbai High fields on the western coast, he added.

OVL managing director Atul Chandra said the Sudan field is currently producing 268,000-270,000 barrels per day (about 13 million tonnes annually), which is more than what India's single largest oil field of Mumbai High produces.

Of this, OVL's share is 25 per cent.

"Production from the field is expected to go up to 300,000 barrels per day (15 million tonnes) by 2004 begining," he said adding exploration in the adjacent areas are giving discoveries in every second well that is being drilled.